M&A Due Diligence in AI: Essential Insights for Data-Sensitive Sectors

How AI Regulation Is Transforming Licensed Professions and Job Security

Update AI Regulation: A Double-Edged Sword for Professionals The landscape of regulated professions is experiencing a shift, driven by advances in artificial intelligence (AI) technologies. With proposed regulations like the Healthy Technology Act of 2025 allowing AI systems to prescribe medications, the question arises: how will these changes impact human roles in occupations that traditionally require a license? As AI tools gain ground in their capabilities, curious expressions surround job security. For instance, the Act permits AI to fulfill functions that typically necessitate human judgment, potentially sidelining licensed healthcare professionals. While proponents argue that AI could enhance efficiency and lower costs, the looming concern of widespread job displacement cannot be overlooked. Human Oversight: An Essential Component Despite the potential benefits of AI adoption in industries such as healthcare and law, the need for human oversight remains critical. Proponents of the Healthy Technology Act emphasize rigorous FDA regulation before these AI systems can operate autonomously. However, how can we ensure that human practitioners maintain their oversight without being rendered obsolete? This dilemma is echoed in the legal profession, where AI is transforming tasks like contract drafting and compliance verification. The Tennessee Bar Association, for instance, underscores the necessity for lawyers to verify AI outputs to protect confidential information. Such adaptation signals a burgeoning need for ethical AI use: understanding capabilities, limitations, and the ethical implications of relying on algorithms. The Balance Between Innovation and Accountability As industries explore AI integration, some policymakers advocate for actively regulating AI applications while ensuring human job security. Recent proposals reflecting this perspective, like the AI-Related Job Impacts Clarity Act of 2025, aim to tackle AI-related layoffs proactively by mandating reports to the Department of Labor. This blending of innovation with accountability aims to foster an environment where technological advancements do not eclipse the need for responsible human oversight. Future Implications for Licensing Standards Looking ahead, the evolving nature of professional licensing standards must correspond with advancements in technology. The Tennessee Supreme Court’s push for regulatory reform illustrates a readiness to address how traditional frameworks can adapt to present-day demands. As AI continues to permeate various sectors, arguments around the necessity for evolution in professional licensing and the implications for regulatory bodies are essential discussions in shaping a balanced future.